A Diagnostics & Imaging Week
OrthoScan (Scottsdale, Arizona) a privately held device company providing state of the art imaging with a focus on orthopedics, reported that it has closed a $7.5 million Series B financing led by River Cities Capital Funds (RCCF). Additional participants include existing investors Aphelion Capital, California Technology Ventures and a group of accredited private individuals.
Carter McNabb, Managing Director of RCCF has joined OrthoScan's board in connection with the financing.
"This round of financing will provide us with the resources necessary to further expand our sales distribution in the U.S. and abroad," said Rob Morocco, OrthoScan's COO. "Additionally, we will continue to improve the design and performance of our Mini-C Arm product as well as develop fluoroscopic imaging products which will allow us to expand our customer base."
In other financing activity, Predictive medicine company PreMD (Toronto) reported completing its previously disclosed debenture financing with several existing institutional investors and insiders, including Midsummer Investment.
The gross proceeds of the financing, which totaled C$500,000, will be used for general corporate purposes.
President/CEO Brent Norton, said, "The proceeds from this financing should enable us to carry forward with our goals into 2009, including actively evaluating the sales and distribution options for our Prevu technology, expanding the market for our existing products in the cosmetics industry, advancing our pipeline of cancer detection products and monetizing various tangible and intangible assets."
The secured debentures mature 12 months after the date of issuance at an amount equal to C$1,111 per C$1,000 principal amount and are secured against the assets of the company. They contain certain accelerated pre-payment provisions at the option of the holders or PreMD.
The company also has issued about 7.68 million common share purchase warrants, each being exercisable for a period of five years into one common share at 5 cents a share, such exercise price being equal to 100% of the average of the volume-weighted average price of PreMD's common shares on the Toronto Stock Exchange for the five-day period ended Oct. 6.
PreMD is focused on developing rapid, non-invasive tests for the early detection of life-threatening diseases. Its cardiovascular products include Prevu POC and Prevu LT, both non-invasive skin cholesterol tests. The company's cancer tests include ColorectAlert, LungAlert and a breast cancer test.
The company's R&D facility is located at McMaster University (Hamilton, Ontario).